Yahoo Finance Did You Miss Moderna's (NASDAQ:MRNA) 20% Share Price Gain?
On average, over time, stock markets tend to rise higher. This makes investing attractive. But not every stock you buy will perform as well as the overall market. Unfortunately for shareholders, while the Moderna, Inc. (NASDAQ:MRNA) share price is up 20% in the last year, that falls short of the market return. We'll need to follow Moderna for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.
Check out our latest analysis for Moderna
Moderna isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last year Moderna saw its revenue shrink by 57%. The lacklustre gain of 20% over twelve months, is not a bad result given the falling revenue. Generally we're pretty unenthusiastic about loss making stocks that are not growing revenue.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
This free interactive report on Moderna's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
Moderna shareholders have gained 20% for the year. While it's always nice to make a profit on the stock market, we do note that the TSR was no better than the broader market return of about 30%. That's a lot better than the more recent three month gain of 3.2%, implying that share price has plateaued recently, for now. It seems likely the market is waiting on fundamental developments with the business before pushing the share price higher (or lower). Most investors take the time to check the data on insider transactions. You can click here to see if insiders have been buying or selling.
Of course Moderna may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
